Normally when all three breadth indicators turn positive I would be looking to increase our stock holdings. However, this turn occurred over a holiday week in which volume was very light. So I take this positive development with a grain of salt.

Stocks are sitting right under heavy resistance and are slightly overbought. In addition, the trend of the market is down. I feel that the odds favor stocks continuing to fall. However, the upturn in my three breadth indicators is a positive signal. So I will be looking at this week’s market action to possibly resolve this conflict.

Client Update

Last week I added a 25% holding of TLT (a Treasury Bond ETF) to all client accounts.

Aggressive accounts are 25% invested in TLT and 75% in a Money Market Fund. Conservative accounts are 25% invested in TLT, 30% invested in High Yield Municipal Bond Funds and 45% in a Money Market Fund.

About the author

Asset Solutions

Craig Thompson, ChFC President

Craig is an Active Money Manager that works with clients across the country. He specializes in working with investors in or near retirement. His investment strategy focuses on using technical analysis to seek steady long-term returns, while protecting clients from large losses during major market corrections.